Canceled Sale Paid With Credit Card, Is Sale Enforceable?

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Sept 14th, a customer bought a computer and some software updates to replace his current system. It was hand delevered on the 15th and the customer plugged it into the internet and I logged on to complete some installation details. Screen shots verify this.

Nov13th I receive the computer via UPS without a call from the customer requsting a RMA. In fact there was no comunication since Sept 18th. We do not accept anything without a PO# or a RMA# so it was refused.

The purchase was made using a Master Card, he complained that he never signed a credit card slip so they took the money he paid me and refunded it to him.

Can I sue him in small claims court? Can he cancel a purchase without even contacting me?

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Of course you can. Did you really think the answer might be otherwise?

Can he cancel a purchase without even contacting me?

He apparently did exactly that, so the answer to this question seems rather obvious.

What are my rights?

Like every other person, you have dozens of legal rights, and it would serve no useful purpose to try and list them all.

We do not accept anything without a PO# or a RMA# so it was refused.

Who are "we"? I assume you or some business entity with which you are affiliated was the seller. Correct? Are these terms clearly spelled out in the written contract between the seller and the buyer?

The purchase was made using a Master Card, he complained that he never signed a credit card slip

So what? I buy stuff all the time online or over the phone and never sign a "credit card slip" or anything else.

so they took the money he paid me and refunded it to him.

Who are "they"? If you're saying that the buyer submitted a dispute pursuant to the provisions of his credit card agreement and that the credit card issuer resolved the dispute in favor of the buyer, it begs the question what the seller submitted in response to the credit card issuer's inquiry. In other words, one cannot buy something online or over the phone and then successfully dispute the purchase on the basis that there is no signed credit card slip. There must be more to this.

But I don't have the computer. I never accepted delivery so it was returned.

First of all, this suggests an obvious flaw in your policy mentioned in your original post. Second, one assumes you pointed this out in response to the inquiry from the buyer's credit card issuer. Right?